CBI asks the Scottish First Minister to acknowledge the risks of independence
as a new analysis casts doubt on how much of his independence White Paper he
could deliver.

Business leaders today challenged Alex Salmond to be “open and realistic” about the dangers of independence as a new analysis found he cannot guarantee a quarter of the promises made in his recent White Paper.

Iain McMillan, director of CBI Scotland, used his New Year message to highlight the “principal risks” of independence to the currency, EU membership, tax, trade and the financial services and defence industries.

He said it was time for SNP ministers to acknowledge these potential drawbacks and outline the “credible and sophisticated measures” available to ensure the economy would not suffer from leaving the UK.

His intervention came as a new analysis of Mr Salmond’s 670-page White Paper on independence, published last month, found 26 per cent of the pledges rely on the assent of other countries.

For example, his plan to keep the pound in a eurozone-style currency union depends on the agreement of the remainder of the UK, while the existing 28 member states would decide if, when and on what terms a separate Scotland would be admitted to the EU.

The analysis, published by the pro-UK Better Together campaign, also found that 14 per cent of the pledges were “based on speculation or assertion”, seven per cent relied on having EU membership and four per cent were dependant on keeping the pound.

SNP ministers promised Scottish voters the White Paper would provide all the answers to their questions but it contained no ‘Plan B’ for a currency if the English, Welsh and Northern Irish refused to share sterling.

The document’s claim a separate Scotland would be admitted seamlessly to the EU and inherit the UK’s opt-outs was undermined only a day later when the Spanish prime minister said it would be kicked out and would have to apply from scratch.

Latvia will become the latest EU country to join the euro this week. Mr McMillan said the CBI believes the nations of the UK are stronger together and acknowledged the Scottish government has a mandate for next September’s independence referendum.

“But businesses are troubled by the risks and costs involved and, in 2014, the Scottish Government must also be open and realistic with business and the people who elected them in acknowledging this. The principal risks are clear,” he said.

“The Scottish Government also needs to acknowledge these risks and costs and inform the people of Scotland that they have credible and sophisticated measures ready to deal with them in a way that will safeguard Scotland’s economy, competitiveness and jobs. In 2014 Scotland’s businesses and people deserve nothing less.”

As well as the EU and currency, he warned the SNP’s plans for a more liberal immigration policy could force the remainder of the UK to operate border controls.

Defence companies face losing contracts from the UK armed forces, he said, and firms operating on both sides of the Border would have to deal with two systems of taxation and regulation.

The Better Together analysis found 167 of the 650 issues addressed in the White Paper would need to be negotiated with other countries. A further 206 (32 per cent) would be for a future Scottish Government to decide, while 74 (11 per cent) are already within the power of SNP ministers.

Jackson Carlaw, Scottish Tory deputy leader, said the analysis proved the White Paper was a “wish list of uncosted promises”.

He said: “The fact that so many of the SNP’s claims in the White Paper would be dependent on agreement with the very country we would have just left shows how little credibility this document has.”

But Nicola Sturgeon, the Deputy First Minister, said the analysis was “negative nonsense” and insisted the White Paper was a “comprehensive blueprint” describing what a separate Scotland would look like.

She attacked Mr McMillan by recalling his opposition to devolution and accused him of “regurgitating the same tired old scare stories”.

Ms Sturgeon also suggested the CBI did not represent the views of business in Scotland and instead hailed a pro-independence group called Business for Scotland, which she said had attracted more than 1,100 members since its launch six months ago.